Current Thinking

Making An ESOP Part of Your Company’s Retirement Plan

One of the most effective ways to make your bank more incentive-driven is to offer company stock through your retirement plan.  It gives your employees the opportunity to invest in ownership in your bank, creates a market for your stock and helps to maximize the Initial Public Offering.

If you are considering adding stock to your retirement plan, it is important to work with a provider who can help you navigate through the complex process.  That provider should be one who is familiar with the bank market, experienced in handling retirement plan stock services and has access to the necessary professional firms needed to expedite the stock offering for you.

Pentegra has the expertise needed to help you successfully offer company stock as part of your retirement plan.  We work closely with many of the leading investment banking firms, law firms and transfer agents that specialize in mutual holding company and stock conversions.  Our experience, knowledge and insights make us the provider of choice among banks nationwide, for retirement plan stock services.

Types of retirement plan solutions with company stock include: a 401(k) Plan with Employer Stock as an Investment Option which combines the equity ownership of employer securities with the retirement savings benefits of a 401(k) plan; an Employee Stock Ownership Plan (ESOP) which provides retirement benefits in the form of company stock; or a KSOP which is an ESOP with a 401(k) feature and provides both employer stock contributions and employee deferrals. 

Pentegra administers company stock in a daily valuation environment – whether it is thinly traded or traded on a major exchange.  Account information and fund performance is accessible 24/7.  A full spectrum of employer stock services – from the IPO to disseminating employee communication and proxy requirements – is also provided.

About the Author

Steve Hughes